De La Rue plc half year results November 2015



  Half Year
Half Year
Revenue 204.8 214.9 (5%)
Underlying operating profit * 18.9 26.6 (29%)
Underlying operating margin * 9.2% 12.4%  
Underlying profit before tax * 12.8 20.6 (38%)
Reported profit before tax 19.6 18.1 8%
Underlying earnings per share ** 9.5p 15.9p (40%)
Reported earnings per share 19.2p 13.5p 42%
Dividend per share 8.3p 8.3p (0%)

* Before net exceptional income of £6.8m (H1 2014/15: £2.5m charge).
** Underlying EPS is calculated before the exceptional income / (charge) noted above and exceptional tax credits of £3.1m (H1 2014/15: £0.1m).

The Directors are of the opinion that these measures give a better indication of underlying performance.


  • Half year results slightly ahead of expectations – full year expectations unchanged
  • Group 12 month order book up 37% year-on-year at £405m, though market conditions remain volatile
  • Print and Paper volumes better than expected, benefited from large overspill contracts
  • Progress on Polymer marked by significant three-year contract
  • Launched first software solution for both Identity and Security Products, and secured first customers
  • Reorganisation complete with new CFO on board; functional structure in place to support delivery of strategy; net headcount reduction of 6%
  • Manufacturing footprint review near completion, expect more than £13m of annual savings from 2018/19, <£30m capex investment and £8m restructuring cost over next two years
  • ‘Root and branch’ review initiated to address CPS poor performance
  • Interim dividend maintained at 8.3p

Martin Sutherland, Chief Executive Officer, commented:

De La Rue’s half year performance has been better than expected. The Currency business has shown strength and resilience against the ongoing volatile market conditions. Identity and Security Products have also progressed well with the launch of the first digital solutions. However, the overall performance was dampened by the poor results in CPS. Our success in winning large overspill orders in the period has strengthened the Group’s order book, which gives us confidence and visibility for our full year performance.

Implementation of the five year plan we set out in May is now well underway. We have restructured the business to support the delivery of the strategy and increased investment in product development and new technologies. Our review of the manufacturing footprint to improve efficiency and reduce costs is near completion and we will provide more details in the coming weeks. Whilst it will, of course, take time to deliver the full potential of the strategy, we are pleased with the progress made at this early stage.”


De La Rue plc   +44 (0)1256 605000
Martin Sutherland Chief Executive Officer  
Jitesh Sodha Chief Financial Officer  
Lili Huang Head of Investor Relations  
Brunswick   +44 (0)207 404 5959
Jon Coles    
Oliver Hughes    

A presentation to analysts will take place at 9:00 am on 24 November 2015 at the Lincoln Centre, 18 Lincoln’s Inn Fields, WC2A 3ED. This will also be accessible via a conference call and an audio webcast. Dial-ins for the conference call are +44 (0) 20 3059 8125, passcode: De La Rue. An archive of the conference call is also available for a week from midday 24 November 2015, which is accessible via +44 (0) 121 260 4861, passcode: 2142 945#. For the live webcast, please register at where a replay will also be available subsequently.

24 November 2015

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